Tuesday, 8 April 2014

If assessee is not satisfied, he may submit an appeal
against the commissioner of income tax (appeals). On the other hand if income
tax department is not satisfied with the orders or the income tax officer then
appeal can not be made. Following are the important features of such appeal.

Right
Of Taxpayer :-

Right of appeals is given only to the taxpayer and not to
the tax department against the order of the commissioner.

Use Of
Prescribed :-

Appeal is filed on a prescribed form which is properly
verified. In this appeal taxpayer explains the grounds on which appeal is made.

Payment
Of Tax :-

Before filling the appeal a taxpayer is required to pay the
full amount due tax on the other hand if tax is disputed then its 15% will be
paid before filling the appeal.

Period
:-

Within thirty days of the receipt of appeal able orders
appeal may be filed. However the date may be extended by the commissioner
income tax (appeal).

Fixation
Of Date :-

Date for hearing the appeal will be fixed by the
commissioner income tax (appeal).

He will also inform the income tax commissioner and
appellant.

Demand
Any Particulars :-

The commissioner income tax (appeal) may demand the
particulars, he may also ask the income tax penal to make further inquiry.

Disposal
Of Assessment Orders :-

In case of assessment order the commissioner income tax
(appeal) may dispose of the appeal in the following way :

i). He may cancel the assessment and may ask the income tax
officer for the fresh assessment.

ii). He may increase the assessment.

iii). He may declare the assessment correct.

iv). He may reduce or annual the assessment.

Case
Of Penalty Orders :-

The commissioner income tax (appeal) may confirm, cancel,
increase or reduce the penalty orders.

According
To His Own Wish :-

The commissioner income tax may pass such orders as he
thinks fit in any other case.

Decision
Period :-

The decision of the appeal should be made within 3 months of
the presentation of the appeal.

Communication
Of Orders :-

The commissioner income tax (appeal) should communication
the order passed by him to the appellant, I.T.O. and the commissioner income
tax (Head Quarters) on the decision of appeal.

Hearing
Opportunity :-

The commissioner appeals gives the chances of hearing to
both the parties. Both can explain their views. It is very useful for making
the correct decision.

Decision
Of Appeal :-

The decision of the appeal will be given by the commissioner
income tax (Appeal).

This tribunal is appointed by the federal govt. If taxpayer
or commissioner is not satisfied with decision of the commissioner appeals then
they can appeal to the above tribunal.

The details are given in income tax ordinance.

Judicial
Members :-

Judicial member is appointed by the federal govt. Who
fulfills the following conditions.

i). He has already worked as district judge and his
qualified to be a judge of High Court.

ii). He is or has been an advocate of high court and is
qualified to be a judge of High Court.

Accountant
Members :-

These are also appointed by the federal govt. They should
possess the following qualification.

i). He may be the income tax officer equal to the rank of
regional commissioner.

ii). He may be income tax commissioner who has at least two
years experience of appellate work.

iii). A person who has practiced as a charted accountant at
least 10 years or above.

Chairman
:-

Federal Govt. generally appoints the judicial member as a
chairman but accountant member is also eligible.

Registrar
:-

Registrar looks after the working of the offices of the
tribunal. He works under the chairman. He receives the appeals and fixes the
dates.

FUNCTIONS OF THE TRIBUNAL :-

To perform the functions the chairman may divides the
tribunal in to bunches. A bunch normally consists of two members. One from each
side. The federal may allow any one member to hear and decide any case.

Majority decisions are accepted in case of any difference on
any point. In the disputed cases chairman appoints one or more members of the
tribunal to hear the case.

FINAL DECISION :-

On the point of facts the decision of tribunal is considered
final. On the other hand if the decision of the tribunal involves a point of
law the case can be referred to the high court.

Monday, 7 April 2014

In the income tax department deputy commissioner income tax
is very important person. He makes various decisions regarding the assessment and
tax collection. He has a direct link with the assessee. He is also responsible
for the administration of income tax machinery in his circle. He has been the
powers executive and judicial.

APPOINTMENT :-

The central board of revenue appoints the deputy commissioner
income tax. However his powers and functions may be revised by the commissioner
income tax with the approval of central boards of revenue.

POWERS AND FUNCTIONS :-

Following are the important functions and powers of deputy
commissioner :

Issues
Notices :-

For the collection of tax from assesses deputy commissioner
income tax issues the notices. He also issues the notices regarding filling of
various returns.

Profit
Computing Power :-

The deputy commissioner income tax may compute the profits of
the assessee according to his own method, if he is not satisfied with the
computing method of the assessee. In some particular cases he is also empowered
to make an additional assessment.

Case
Of Self Assessment Scheme :-

Under the self assessment scheme if any assessee has filed
the return of income. It can be adjusted by the deputy commissioner income tax
to frame the assessment.

Power
Of Penalty :-

Deputy commissioner income tax has the power to impose
penalty with the prior approval of inspecting assistant commissioner in the
following cases.

i.If any taxpayer fails to obey the notice issued by him.

ii.If any taxpayer is obstructing the income tax
authorities.

Cancellation
Power :-

If the necessary requirements are not filled by the
registered firm then its registration can be cancelled by the deputy
commissioner income tax. He may allow or refuses the registration of the firm.

Rectify
Mistakes :-

Deputy Commissioner income tax has the power to remove the
mistake of assessment order passed by his predecessor or by him.

Provisional
Assessment Power :-

If taxpayer fails to file the his income then deputy
commissioner income tax is empowered to make a provisional assessment in this
case.

Tax
Refund Claims :-

The deputy commissioner income tax receives the application
claiming the refund of tax and also makes decisions about them.

Data
Extension Power :-

In genuine cases deputy commissioner income tax has the
power to extend the date for filling the return of income. He can also admit
the applications for refund of tax after the expiry of the due date.

Powers
Of A Judge :-

The deputy commissioner income tax may enforce the
attendance of any person to produce the documents about the accounts. He also
exercise the powers of a judge and accepts the evidence on affidavit.

Finding
Out The Real Market Value :-

The deputy commissioner income tax has the power to find the
real market value of the assets which are sold by the assessee. If he feels
that market value in higher then sale price he can find out the real market
value.

Controller
Of Staff :-

The deputy commissioner income tax controls his subordinate
staff and provides them instructions.

Checking
Of Business :-

The deputy commissioner income tax has the power to entire
in to any business enterprise to check the business and books of accounts.

Discretionary
Powers :-

Various discretionary powers are powers are given to the
deputy commissioner income tax almost in all the matters relating to assessee.

Penalty
For Not Filling Return :-

If any person fails to provide the return with in the
prescribed time with out a genuine reason, the deputy commissioner is empowered
to impose penalty on him with the prior approval.

Power
Of Holding Refund :-

The deputy commissioner income tax can with hold a refund
resulting from an appeal able order where such order is under further appeal,
with the approval of the deputy commissioner income tax.

Penalty For
Concealing Income :-

If any person conceals or provides
wrong particulars of income, the deputy commissioner income tax may impose
penalty on him.

Wealth
Statement :-

Deputy commissioner income tax may ask the taxpayer to
submit the details of his wealth.

Retains
Documents :-

Deputy commissioner income tax can retain the documents of
the taxpayer for the purpose of prosecution.

Penalty
For Non Maintenance of Books :-

If taxpayer fails to maintain all the necessary books of
accounts then deputy commissioner income tax
is empowered to impose penalty on him.empowered to impose penalty on him.

Tuesday, 1 April 2014

He is an important income tax authority which has executive
and judicial powers. The central board of revenue is the appointing authority
for commissioner of income tax. Normally commissioner is appointed as an
incharge of a zone. He is responsible for the administration of the area
assigned to him. He is subordinate regional commissioner income tax.

JURISDICTION :-

In a
specific area which is assigned to him, he performs both the function
judicial and executive.

If
specific area is not assigned then he performs his duties according the
directions of central board of revenue.

FUNCTION AND POWERS OF COMMISSIONER OF INCOME TAX :-

The commissioner exercises the power to control the staff of
income tax department working in his jurisdiction. He is also responsible for
the efficiency of work in all respect in his zone.

Following are the important functions and powers of
commissioner of income tax.

Determine
The Jurisdiction :-

He has the power to determine the jurisdiction and assign
the work to subordinate inspecting additional commissioners income tax and
deputy commissioners.

Final
Authority To Decide The Dispute :-

Commissioner income tax is the final authority to decide the
disputes if two subordinate income tax authorities are not in agreement
regarding their areas of juries diction or the assessment of a person.

Transfer
Of Jurisdiction :-

He is empowered to transfer the jurisdiction from one income
tax authority to another.

Revision
Of Orders :-

He may revise any other passed by his subordinates however
these orders should not be prejudicial to the assessee.

Power
To With Held The Refund :-

The commissioner of income tax is empowered to order that
the refund must be with held if the department wants to appeal against the
refund.

Refer
The Case To High Court :-

If he is not satisfied with the decision of appalled
tribunal, he can request the tribunal to refer the case to high court provided
that the decision involves the point of law.

Power
To Compound Offence :-

He may either before or after the institution of proceedings
compound such offence where a person has committed any offence under the income
tax law.

Order
To Person For Payment :-

He may order a person who has committed an offence to pay
the amount for which the offence may not compound.

Power
To Disqualify The Practitioners :-

If he finds any practitioners qualify of misconduct, he may
disqualify an income tax practitioner to appear before any income tax
authority.

Power
To Amend His Orders :-

To rectify any mistake from the record the commissioner
income tax may amend his orders passed by him.

Power
To Receive Evidence :-

The commissioner has the power to receive the evidence on
affidavit. For the examination of
witness he can issue the orders to commissioners.

Power
To Demand Documents :-

He can compel any person to produce his books of accounts or
any other documents for investigation. He can also enforce any person to attend
his office and he can examine him.

Power
To Extend The Petition Period :-

He can extend the normal period for filling a revision
petition, If he is satisfied about the cause of delay.

Power
To Decide The Revision Petitions :-

Against the decision of his subordinates he entertains,
hears and decides the revision petitions of aggrieved assesses.

May
Direct For Appeal :-

The commissioner of income tax (Head quarter) may direct the
deputy commissioner to appeal to appellate tribunal against the decision made
by the commissioner income tax (appeal).

Penalty
:-

If the notice has been issued to any taxpayer but he has
failed to obey the notice. In this case commissioner income tax may impose
penalty on that person.

Best
Judgement Assessment :-

If any person fails to file the return of income tax with in
due date then the commissioner can make the best judgement of assessment.

Power
Of Recovery Of Tax :-

The commissioner income tax can take various steps to
recover the amount if any person fails to pay the due tax.

Inventory
Of Articles :-

If any article is not entered and it is found in the
premises the commissioner can make inventory of that article.

Provisional
Assessment :-

The commissioner income tax has the power to make the
provisional assessment if any person fails to file the return.

Notice
For Tax :-

The commissioner income tax can issue the notice to any
person for filling the return or for the collection of tax from the tax payer.

Retain
The Documents :-

The commissioner income tax is empowered to retain the
important documents of the taxpayers for the purpose of prosecutions.

Change
The Method Of Accounting :-

If any person wants to change his method of accounting, the
commissioner income tax may allow him to change.